Shares in gaming company Esports Mogul Ltd (ASX: ESH) are dropping today as the company announced its quarterly report.
The Esports Mogul share price has fallen 7.69% on the back of the news. In morning trade, its price dropped as low as 2.2 cents although it currently sits at 2.4 cents.
What did the report reveal?
The quarterly report has been highly anticipated, with the Esports Mogul share price jumping up as high as 3 cents within just the last 5 days. However, with a higher share price comes higher expectations.
During the quarter, the e-sport gaming company announced an oversubscribed placement which successfully raised $8 million. The placement will focus on funding the company’s expansion into mobile gaming. Strategically, with no native mobile tournament solution currently in the market globally, Esports Mogul believes it possesses a first mover advantage.
Furthermore, the company also announced a deal to partner with NASDAQ-listed Super League Gaming. The partnership gives Esports Mogul the opportunity to incorporate Super League Gaming’s AI technology into its platform.
Despite the positive announcements, the company’s cash flow report failed to impress, raking in just $66,000 from customers. In total, the company lost $523,000 in the quarter. As a result, Esports Mogul has $1.68 million in the bank, but this does not take into account its recent placement.
Esports Mogul announced two newcomers to the leadership team, with Kate Vale and Michael Rubinelli joining the company.
Mr Rubinelli, a former Electronic Arts and Walt Disney Co executive, has been appointed CEO. He brings significant experience in executive leadership, product development and revenue growth. Ms Vale, who has experience with Alphabet Inc and Spotify Technology, joins the Esports Mogul board.
What now for the Esports Mogul share price?
Despite recent share price gains, the company’s market cap remains around the $60 million mark.
The company finished developing its tournament-as-a-service offering for global brands, advertisers and agencies during the quarter, which may bode well for the Esports Mogul share price moving forward.